Business

GM profit loss, but hoped to reverse it before the end of 2010.
by Milota Sidorova

The vision for once automaker giant General Motors was to get governmental support and ended up, transforming into smaller but viable company. The idea was to redesign not only models, but the whole structure. Honestly, no one was expecting miracles, however the governmental golden stream meant more than 20 billion support. The company after general redesign is struggling, but still alive. The report for the last year said the company is dealing with more than $4.3 billion. Vice chairman of the company, Chris Liddell said it was a sign for improvement and continued we believed GM could make it profitable by the end of 2010. The net loss was caused by $2.6 billion retiree me! dical plan relating to the United Auto Workers. Another $1.3 billion was caused by foreign currency re-measurement loss. But the last year the company post profitable U.S. sales was in 1999 (9 percent growth). Since then it's been declining up to 30 percent loss compared to 1999.GM changed the CEO post last year, Frederick Henderson who was in charge since bankruptcy led the company to Edward Whitacre, Jr. The company has already overcame huge cuts in its portfolio since it's dropping Hummer, Pontiac and Saturn brands. The trend is to focus on four core and typically US brands including Chevrolet, Cadillac, Buick and GMC. GM also decided to hold full ownership of its European brands of Opel and Vauxhall, but sold Saab Automobile to Spyker Cars. Except of this, GM is holding its Australian model Holden and South Korean Daewoo.Liddell said the company was aiming to go public again and he cited this an “important step” towards profitable tomorrow.

related s! tory (sgx16959): http://www.france24.com/en/20100407-gm-posts-billion-dollar-...

by Milota Sidorova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

posted by Blog TechSource @ 12:18 PM